Sinoma has been awarded the Yamama Cement production line upgrade contract. According to Saudi media, the contract is for a full-scale upgrade of the cement production line, aiming to increase its capacity to 12,500tpd. Building upon the relocation of the existing 10,000tpd cement production line, this project aims to achieve technological innovation and capacity enhancement.
Sinoma Overseas is entrusted with the comprehensive engineering design, procurement and supply of new equipment, civil construction, installation and commissioning. This venture goes beyond a mere engineering project. It's a testament to the company's innovative capabilities and project management expertise.
Growing cement demand
Saudi Arabia’s cement industry anticipates strong cement demand due to the announcement of several infrastructure projects nationwide. This is also drawing foreign direct investment in cement and allied industries.
According to Finland-based Terra Nova Capital, the fund substantially invested in a US$1.5bn cement producer in Saudi Arabia during January 2024, which could benefit from an exceptionally strong long-term demand outlook in light of the massive pipeline of mega projects in the country along with construction activities for the Expo 2030 and 2034 FIFA World Cup.
The unidentified cement firm has recently transferred its old factory out of Riyadh. The 4.7km2 plot of the old factory is fully owned by the company and will soon become available for sale or joint venture real estate development. The market price of this land in Riyadh is over US$1bn, or more than two-thirds of the company’s market cap. A lot of shareholder value is waiting to be unlocked soon.
